Hong Kong’s Securities & Futures Commission (SFC) has added cryptocurrency exchange Bybit to its warning list as of March 14. The regulator issued a statement cautioning the public about Bybit, an unlicensed virtual asset trading platform (VATP) that offers crypto-related trading services in multiple jurisdictions.
The SFC specifically highlighted 11 products offered by Bybit, including Bybit Futures, Bybit Options, Bybit Leveraged Tokens, Dual Assets, Bybit Lending, and Bybit Wealth Management. The regulator stated that none of the entities within the Bybit group are licensed or registered with the SFC to conduct any regulated activity in Hong Kong.
In Hong Kong, crypto-related products such as futures contracts or securities require prior licensing from the SFC before they can be offered to residents. The warning issued on March 14 pertains to Bybit.com and its Seychelles-registered owner, Bybit Fintech Limited. It should be noted that this is different from the domain https://www.bybit.com.hk, owned by Spark Fintech Limited, which does not currently provide crypto services in Hong Kong.
As previously reported on Feb. 1, Bybit is actively seeking a virtual asset trading operator license (VATP) in Hong Kong through its subsidiary, Spark Fintech Limited. Currently, only two crypto exchanges in Hong Kong have obtained licenses from the SFC: OSL exchange, licensed on Dec. 15, 2020, and HashKey Exchange, licensed on Nov. 9, 2022.
The deadline for crypto exchanges operating in Hong Kong to submit VATP applications was on Feb. 29. Unlicensed firms must cease operations in the Special Administrative Region by May 31. Additionally, exchanges whose VATP applications are rejected by the SFC must also leave the city within three months.
In related news, Hong Kong has entered phase 2 of its Central Bank Digital Currency (CBDC) pilot.